Ruble Declines Despite Central Bank Rate Hike

December 16, 2014 9:27 AM

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After a massive overnight rate hike by Russia's Central Bank, the ruble staged a two-hour rally Tuesday morning before rolling back to new historic lows.

The surprise Central Bank decision to raise the rate to 17 percent from 10.5 percent came in the early hours on Tuesday in a desperate attempt to prop up the troubled currency. It's the biggest interest rate hike since 1998, the year when Russia defaulted on its sovereign bonds.